The decision to go forward with your plans to start a family is a joyous one, but it can also lead to increased stress especially if your financial house has not been child-proofed. Considering that, on average, the cost of raising a child now exceeds $300,000, there’s little margin for error for most young families that have other important financial goals to achieve. There’s no reason why you should get caught off guard or caught...
This is the story of two friends – one, we’ll call Randy, who, at age 25, recognized the importance of starting a retirement savings program. The other is Peter, same age, but he couldn’t seem to see beyond his need for more immediate gratification – wanting to experience the kind of life style enjoyed by his more highly compensated friends. Randy, decided to establish a 401k account and begin saving $800 per month, about $10,000...
For over 200 years, family businesses have been at the core of wealth creation in America. Family business founders take the leap of faith to launch their business venture, often risking everything, and then spend their waking hours to realize their vision. The minority will achieve some element of success at which point they encounter a whole new range of challenges in balancing the demands of family life and the needs of their business. Most...
If you believe some of the world’s greatest investors, such as Benjamin Graham and Warren Buffet, it’s not investments that cause people to lose money; rather, it’s people who cause people to lose their money. What is meant by that is investing with sound principles and intelligent practices will always have a greater likelihood of success. However, without a solid investment plan and the discipline to stay the course, investors are much more vulnerable to...
This isn’t our parents’ or grandparents’ retirement anymore. Just a few decades ago, many retirees enjoyed the full benefits of the “three-legged stool” of retirement provide by guaranteed pension payments, savings, and Social Security. In addition, they didn’t have to be very concerned with how much of their income translated into actual purchasing power because, except for the mid to late seventies, inflation was not a big factor for several reasons. Today, the three-legged stool...
The saving versus paying off debt is an age-old quandary that has plagued people since the advent of consumer debt. Pose this question to a group of financial planners and the responses will be split, roughly down the middle. While there might be as many advocates for savings as there would be for paying down debt, the broad consensus will likely be that it really depends on the situation. Much of the debt reduction argument...
Everyone can learn some valuable lessons from Warren Buffet, arguably the most successful investor of all time. Buffet has two strict rules about investing that anyone would find, well, frustratingly simplistic. The first – “don’t lose money,” and the second – “don’t forget rule number one.” But for Buffet, winning can only happen in the stock market. Obviously, when your money sits in low yielding savings accounts it is impossible to win. In fact, if...
Unquestionably, the Internet has changed everything, making our lives easier and more productive as we cruise at digital speed down the information highway. No other activity better exemplifies the transformation in our daily lives as does online banking which give us instant, and, with smart phone technology, around the clock access to most any service we require of our banks. The last remaining reason to have to get in the car and drive to the...
If you listen to any of the world’s leading investors they will tell you that nothing is more important to long-term investment success than a clear investment philosophy. More important than a sound investment strategy? Yes, they will tell you, because strategy, while important, is nothing more than a manifestation of an investment philosophy. Strategy can evolve as circumstances might warrant; however, an investment philosophy is based on the intractable belief you have in the...
At a time when many Baby Boomers are approaching their retirement years with grave concerns over their income sources, the late night pitches for reverse mortgages may look quite appealing to some. As with any financial strategy, especially those that involve the equity in your home, they should be carefully weighed against your needs, concerns, and priorities. For the right situation, reverse mortgages may have their advantages. But, the disadvantages are many, so, with the...
Warren Buffet has made no secret of his successful investing strategy. “Buy into fear” he says, “Buy when everyone else is selling”. For most, average investors that may be much easier said than done. Perhaps if we all had a few billion dollars in the bank, we might be able to muster up more courage and take some more risks. The fact is, however, that anyone can make money in bull markets; however, he has...
A recent survey by HelloWallet has reignited concerns over the future state of retirement in the U.S. The survey reveals that 25 percent of people holding funds in a 401k or an IRA have dipped into them, and not just in a small way. Even more alarming is that the funds are being accessed through straight cash withdrawals rather than loans. All of this at a critical time when the savings rate among Americans continues...
